Hoffman looks to redevelop strip mall

Hoffman Estates is closer to establishing a tax-increment financing district which would use property taxes to redevelop the Barrington Square Mall.

The strip mall, on Higgins Road near Barrington Road, is in dire need of repairs; its redevelopment is very important for the village, Mayor William McLeod said after Monday's board meeting.

"With the loss of Menard's, we need to bring someone in there that can be a real anchor," McLeod said.

The board approved paying back the mall's Dutch owners for improvements to the property in the event trustees later establish a TIF for the area. It doesn't lock the village into creating a TIF, but does give the mall's owners additional motivation to move forward with redevelopment in order to make the parcel more attractive to businesses. The board also approved an eligibility study for the proposed TIF.

The developer wants to invest $7 million in work, which includes $418,000 for the demolition of the former Menard's store which closed around Thanksgiving. There's also $1.1 million devoted to parking lot work and $3.2 million for new building facades.

Last month, village officials went to the International Council of Shopping Centers conference in Las Vegas and talked to businesses and restaurants about Barrington Square and other village properties. McLeod said the village would like a grocery store or hardware store to move in.

Village Manager James Norris said a preliminary feasibility study already has been completed, but there is no development plan in place. Officials are waiting for an anchor store, which could attract other businesses as well.

The proposed project boundaries only include the main mall strip. The project does not include the restaurants along Higgins Road, such as Burger King and Buona Beef.

Tax-increment financing districts freeze property taxes generated within its boundaries and divert that money to fund improvements in the district. Typically, TIFs last 23 years.

While developers laud TIFs as a way to generate money for their projects, critics claim they keep money from schools and other taxing bodies without much governmental accountability. TIFs are designed to help blighted areas; studies are done to determine whether areas actually are blighted and the worth of TIF funds.

The village's Sears TIF district was the highest-grossing TIF last year in the suburbs, bringing in $27.5 million in property taxes, according to the Cook County clerk's office.